At ShipHub an IKEOCEAN® Company, your one-stop solution for all your ocean freight shipping needs. We understand that navigating the world of ocean freight can be complex, which is why we’re here to provide you with all the information you need to make informed decisions.
What is Ocean Freight Shipping?
Ocean freight shipping is the transportation of goods via sea using cargo ships. It is one of the most cost-effective and efficient ways to transport goods internationally, making it an essential component of global trade.
Advantages of Ocean Freight
Cost-Effective
Ocean freight shipping is generally more cost-effective than other modes of transportation, especially for large and heavy shipments.
Suitable for Bulk Shipments
Ocean freight is ideal for transporting large quantities of goods, making it the preferred choice for businesses dealing with bulk cargo.
Global Reach
With access to major ports around the world, ocean freight allows you to reach virtually any destination, making it perfect for international trade.
Disadvantages of OCEAN Freight
Longer Transit Times
Compared to air freight, ocean freight shipping usually has longer transit times, which can impact supply chain timelines.
Weather Dependency
Ocean freight shipments are susceptible to delays due to adverse weather conditions, such as storms and rough seas.
Limited Flexibility
Once a shipment is on the water, making changes to the delivery schedule can be challenging, leading to potential disruptions in supply chain management.
Best Incoterms to Use for Ocean Freight
When engaging in ocean freight shipping, it’s important to understand the International Commercial Terms (INCOTERMS) that govern the transaction. Here are some commonly used.
FOB (Free On Board)
The seller delivers the goods on board the vessel at the named port of shipment. The buyer is responsible for all costs and risks from that point forward.
CIF (Cost, Insurance, and Freight)
The seller is responsible for the cost, insurance, and freight of the goods until they reach the named destination port.
EXW (Ex Works)
The seller makes the goods available at their premises. The buyer is responsible for all transportation costs, insurance, and any other expenses from that point.
CFR (Cost and Freight)
The seller is responsible for the cost and freight of the goods until they reach the named destination port.